The cost of getting behind the wheel is on the rise, with the total sum shelled out by motorists for tax, fuel and car insurance amounting to an often eye-watering sum.
Meanwhile, new EU rules are further hiking up the cost of young women's premiums as they ban insurers from using gender as a factor when pricing premiums.
Understandably, many drivers feel they are paying too much and want to cut the cost where possible. One simple option is to ensure you're not paying too much for car insurance. Having motor insurance in place is a legal requirement, unless you've got permission to keep your vehicle off road and uninsured (which involves applying to the DVLA for a Statutory Off Road Notice (SORN) and surrendering your tax disc).
So saving money by not getting car insurance is simply not an option unless you are content to break the law and risk substantial penalties, including a £1,000 find and perhaps even having your car destroyed.
However, every application for car insurance is different, and the price of a policy is based on the particular risk you and your car poses to the insurer. So anything that impacts the perceived level of risk will affect the premium you pay. Some aspects, such as your age and location, you won't be able to change - but others, you can.
Here we show you what affects your insurance premium, and how you can avoid paying too much for car insurance cover.
Pick your car carefully
The combination of car, engine size and value all affect the cost of car insurance. All cars are allocated to groups numbered 1 to 50 by the insurance industry.
Where a particular car falls depends on various factors, such as the cost of repair and its overall performance capabilities. For example, if you drive a sports car it will be considered more risky as the likelihood of having an accident and making a claim is higher, and therefore the cost of a car insurance policy will be greater.
The lower car insurance groups are inhabited by those cars that are the cheapest to insure. So choose carefully when picking a car, as the premium you'll pay for a policy will be partly dependent on this. If you want to know where a particular car fits, check out our car insurance groups guide.
Making modifications
Have you fitted alloy-wheels to your car? Tinted windows? Rear-mounted spoiler? If you have made any modifications like this it could change impact which group your car falls into for insurance purposes. And car groups notwithstanding, the statistics used by insurers say you're more likely to make a claim if you've made these kinds of changes. So if you want to keep the cost of car insurance under control, it's best to avoid making any modifications.
If you modify your car, tell your insurer straight away - don't wait till renewal. If you make a modification and don't tell the insurer, it might resist paying out if you subsequently make a claim.
However, of course, some changes will be positive according to insurers, such as fitting alarms or anything that improves the security of your car, as beefing up your security will inevitably put the majority of thieves off.
You can find more information on the impact of modifications on our modified car insurance page.
Drive fewer miles
Quite simply, the more you drive, the more chance there is that you'll be involved in an accident - and therefore make a claim on your car insurance.
So if you want to avoid paying too much for car insurance, bring down the number of miles you drive each year. You'll be asked for this figure when you apply for insurance, and it's important to be honest - as you risk your policy being worthless if this turns out to be an incorrect underestimation.
Consider where you park
If you park your car in a garage or off-road secure location you'll bring down the cost of your premium. Your car is most at risk or being stolen or vandalised if it's parked on the road, so this will increase the cost of cover.
Black box insurance
For younger drivers, black box insurance is a new option that can substantially reduce the cost of car insurance. A black box will be put in your car to monitor your driving. Here we explain how this works.
This way you can prove that you are a safe driver, and be considered lower risk by an insurer, with premiums to match.
Increase your excess
The excess is the amount you pay towards any claim you make. All car insurance policies include a mandatory excess, but you can cut your premium by opting for a larger voluntary excess. So if you agree to pay the first £250 of any claim rather than just the first £100, for example, your policy will cost less.
Don't push your voluntary excess too high, though - you have to keep it affordable in case you do make a claim as the insurer will deduct the total excess off any amount you successfully claim.
Compare car insurance policies
One of the simplest ways to avoid paying too much for car insurance is to use a comparison site such as MoneySupermarket. You can compare hundreds of different car insurance policies by inputting your information to find the most competitive deal for you.
Comparing a wide range of providers and prices with a few clicks of the mouse is one of the best routes to a good deal.
Source: MoneySupermarket
No comments:
Post a Comment